Shinhan Asset Management's Shinhan Ma-eum Pyeonhan TDF Series Surpasses 1 Trillion KRW in Net Assets

by Ryu Hyunseok

Published 26 Apr.2024 09:09(KST)

Shinhan Asset Management announced on the 26th that its flagship pension product, the Shinhan Ma-eum Pyeonhan TDF series, has surpassed 1 trillion KRW in net assets due to excellent performance and the inflow of retirement pension funds through the default option.

According to KG Zeroin, as of the 24th, the Shinhan Ma-eum Pyeonhan TDF series has shown a net increase of around 80 billion KRW since the beginning of the year, maintaining a stable growth trend. The primary factor behind this capital inflow is its outstanding performance. In particular, it has maintained the top position since January 2023 in the 3-year performance metric, which encompasses long-term management capabilities. Among TDF series with assets under management exceeding 500 billion KRW, considered industry leaders, the 3-year returns for the 2035, 2040, and 2045 vintages?core generations for pension investment mainly in their 40s?are ranked first at approximately 10.2%, 12.5%, and 13.6%, respectively.

The key to the Shinhan Ma-eum Pyeonhan TDF’s excellent performance lies in Shinhan Asset Management’s distinctive strategy that strengthens management responsibility. Using an open universe, it selectively invests not only in its own products but also in various excellent global products. It incorporates domestic individual bonds and overseas individual stocks through thorough risk management. For overseas stocks, it employs a flexible currency strategy that primarily uses a currency-open approach but adjusts the currency hedge ratio according to market conditions.

Kim Seong-hoon, Head of the Multi-Asset Management Center at Shinhan Asset Management, stated, “Despite still high interest rates, the market’s preference for risk assets remains strong, so we plan to focus on sectors and themes with clear visibility.” He added, “We are reviewing the timing to increase the weighting of the mining sector, which is expected to benefit from rising copper and gold prices, and the European stock market, where the timing of interest rate cuts is expected to be earlier.”